MW: 30-year-mortgage rate soars to almost 2-year high
By Ruth Mantell
WASHINGTON (MarketWatch) -- Following news that the Federal Reserve could start tapering bond purchases this year, the average rate for the 30-year fixed-rate mortgage soared to 4.46% in the week ending June 27 - hitting the highest rate since July 2011 -- up from 3.93% in the prior week, Freddie Mac said Thursday in its weekly report. That gain of 53 basis points is the largest weekly change since 1987. A year ago, the 30-year rate averaged 3.66%. Despite recent rate gains, housing affordability remains relatively high and economists say an improving economy should help the housing market continue to rebound this year. Meanwhile, the 15-year fixed-rate mortgage average also jumped up in the latest week, rising to 3.5% from 3.04% in the prior week. The average rate on the 5-year Treasury-indexed hybrid adjustable-rate mortgage rose to 3.08% in the latest week from 2.79% in the prior week. The 1-year Treasury-indexed ARM increased to 2.66% in the latest week from 2.57% in the prior week.
